Abu Dhabi / WAM
The China National Petroleum Corporation (CNPC), the world’s third largest oil company, has been awarded stakes in two of Abu Dhabi’s offshore concession areas following the signing of agreements with the Abu Dhabi National Oil Company (ADNOC) on Wednesday. Under the terms of the agreements, CNPC, through its majority-owned listed subsidiary PetroChina, has been granted a 10% interest in the Umm Shaif and Nasr concession and a 10% interest in the Lower Zakum concession.
PetroChina contributed a participation fee of AED 2.1 billion ($575 million) to enter the Umm Shaif and Nasr concession and a fee of AED 2.2 billion ($600 million) to enter the Lower Zakum concession. Both concessions will be operated by ADNOC Offshore, on behalf of all concession partners.
The agreements were signed, in Abu Dhabi, by Dr Sultan Ahmed Al Jaber, ADNOC Group CEO and Wang Yilin, CNPC Chairman. The agreements have a term of 40 years and are backdated to March 9, 2018.
Dr Al Jaber said the expanded collaboration with CNPC further strengthens and deepens the strategic and economic relationship between the United Arab Emirates and China, the world’s second largest economy. “Energy cooperation is an increasingly important aspect of the UAE’s relations with China, the number one oil importer globally and a major growth market for our products and petrochemicals. These agreements are new milestones in ADNOC’s thriving partnership with CNPC and also represent an important platform upon which we can explore opportunities further downstream.
“CNPC’s involvement in our offshore concession areas will help to maximise the returns from what are very attractive, stable and long-term opportunities. At the same time these agreements further underline the international energy markets’ confidence in ADNOC’s 2030 growth strategy as we accelerate delivery of a more profitable upstream business and generate strong returns for the UAE.” China’s largest oil and gas producer and supplier, CNPC, through PetroChina, produces 52% of China’s crude oil and 71% of its natural gas production, and has exploration and production activities in more than 30 countries in Africa, Central Asia-Russia, America, the Middle East and the Asia-Pacific.
In 2016, PetroChina produced 772.9 million barrels of crude oil and 3,464 billion cubic feet of natural gas in China.
In February 2017, CNPC was awarded an 8% interest in Abu Dhabi’s onshore concession, operated by ADNOC Onshore. It also has a 40% stake in the Al Yasat concession with ADNOC.